It is almost rare and impossible for a person to be a stock market winner by just feel or gut. It requires heavy discipline and patience to be a good investor. You need to develop your own investment style or strategy at the same time be adaptable.
Like each and every human is different by looks, thoughts and character so is the investment decisions that each person follow. Define your strategy by empowering your strengths and eliminating weakness. Make sure what method you follow, keep it simple.
Analysis Strategy
This is for people who love numbers, charts, graphs. This primarily focuses on details analysis of company accounts.
Value Investing
It is as simple as buy the stock when it is cheap and then sell shares once it becomes expensive.
Focus Investing
This group of investors focus on a particular sector of the business that they know well. Research an area in depth to win over others in the market.
Top-Down Investing
Identify a business which you think will benefit with the trend. Pick the best companies of that sector. In 2012, One of the most prominent business structure is consumer electronics - Tablet, Mobile Phone. The key trend is mobility and you have a huge list of different products in market.
Warning: You need to perform trial and error to understand which strategy works for you. You shouldnt follow what your friend follows. There is nothing right or wrong here. I should also mention about the strategy that is not favored. This strategy involves following the price banners on television, volume of stocks traded to decide the future of the company and your investment. Also do not bring emotions to this subject area, you shouldn't invest in a company who is the best employer, or whose products or advertisement you like. Rather invest in a company understanding company's goal and brings home profit.
